|Location||Wuhan, Hubei Province China|
|Project Type||Built-to-suit and Upgrade of Existing Facility|
|Asset Type||Distribution & Logistics Warehouse|
|Gross Floor Area||65,200m²|
|Structure||Concrete & Steel|
|Project Completion||July 2019|
UI Wuhan Manufacturing & Logistics Park is located in the non-bonded Jiangxia EDZ in Wuhan, a mature submarket area of automotive showrooms and logistics warehouses. Being positioned at the intersection of two multi-lane avenues, the site benefits from its proximity to the newly operational 4th Ring Road and is just 2.5 km away from the G4 and 4th Ring Road interchange which provides direct access to Wuhan downtown and Wuhan International Airport, 25 and 60 kilometers away respectively.
UI sourced and identified this secondhand site through its extensive network of relationships. We developed the investment strategy including the development and construction approach and leasing plan, which was presented to our capital partner to acquire the site in the form of an equity transfer. UI were able to arrange construction financing with local lenders and undertook extensive company related due diligence covering comprehensive legal, accounting and tax reviews as well as detailed property due diligence.
The development was complicated due to the seller’s demanding requirements but UI was able to structure the transaction to meet the seller’s needs while at the same time protecting its capital partner’s investment. The site had three existing warehouse facilities totaling 33,372 m² and vacant land for half of the site. Prior to closing on the transaction UI identified a build to suit development opportunity for a tenant (one of the major delivery companies in China supporting e-commerce activities) that had a leasing requirement of approximately 31,000 m².
The development strategy was to develop the BTS facilities and dormitory for the tenant and to refurbish and reform the existing facilities to target identified speculative tenant demand from 3 PL logistics/e-commerce tenants.
This project was completed in July 2019 and all the completion certificates and property titles are in place.